A Disadvantage of Subsidiary Ledgers Is That They Do Not

question 188

True/False

A disadvantage of subsidiary ledgers is that they do not aid in locating errors in individual accounts.

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Definitions:

Materiality

A principle that dictates that all significant information that could influence the decision-making process of users of financial statements should be disclosed.

Fair Value

The estimated market value of an asset or liability, based on current prices in an open market.

Financial Statements

Formal records that outline the financial activities and condition of a business, including balance sheets, income statements, and cash flow statements.